Private Rented Sector Priorities For London

Transcription

1 National Landlords Association Private Rented Sector Priorities For London Richard Lambert Chief Executive Officer The Private Rented Sector Looking to the Future CIH London 28 June 2012

2 The National Landlords Association The UK s leading representative organisation for private residential landlords Over 20,000 members Providing information, advice and services to support members businesses Campaigning to influence policy and to make the landlords voice heard Working to raise standards in the private rented sector and ensure landlords are aware of their rights and responsibilities

3 The Government s Housing Strategy How will the PRS fulfil its essential role? Offering more housing Realising the aspiration for institutional investment Cracking the conundrum of Build to Rent Overcoming barriers to investment Improving standards Working with the industry Encouraging local authorities to make full use of their powers to tackle problems

4 WHY IS THE PRS GROWING?

5 million households Private renting is increasing nationally Owner Occupiers Social Renters private renters Housing tenure by households in England Source: EHS Headline Report

6 And in London Housing Tenure in London Source: London s Poverty Profile 2011

7 / / /09 Supply does not meet demand 35,000 30,000 Current target: 32,600 dwellings pa 25,000 20,000 LDD data 15,000 10,000 Housing Provision Survey 5,000 0 Net conventional housing supply in London /10

8 so London Prices Continue to Rise Trend in Prices and Deposits for First Time Buyers in London Housing in London: March 2012

9 moving further away from wages Ratio of lower quartile house prices to lower quartile earnings Housing in London: March 2012

10 PRS bridges the gap Housing Tenure in London Source: London s Poverty Profile 2011

11 Proportionately, the largest PRS by region Household Tenure By Region Source: English Housing Survey

12 Prices and Demand lead to higher rents Trend in London Private Sector Rents Housing in London: March 2012

13 Housing in Flux What is the future and expectation of home ownership? What is the role of social housing? What is role, understand and expectations of the PRS? What is the ability of the individual to fund their own housing need?

14 TACKLING THE AFFORDABILITY GAP

15 Social housing Increasing Supply Little prospect of increase beyond government plans Owner occupation Housebuilding market depends on mortgage availability Mortgage initiatives Bringing forward public land PRS Increased PRS investment Institutions and REITs Build to rent

16 There will always be a small business sector 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Others Institutions Individuals/couples % of PRS Dwellings by Ownership Source: Towards A Sustainable Private Rented Sector: LSE 2011

17 Year Percentage PRS Decline Related to Rent Control 80.0 PRS (%age of Housing Stock) Year PRS (%age of Housing Stock)

18 Short-term, not Strategic Failure to understand the economics of supply Rents reflect the market up or down Landlords need to cover their costs and make a return Misreading the culture of private rental suppliers Deterring new investors Political opposition

19 STANDARDS IN THE PRS

20 The PRS houses a more diverse tenant group Source: NLA BDRC Survey Q1 2012

21 Do You See the Iceberg? 85% of tenants satisfied with accommodation NLA survey 80% 71% satisfied with quality of repair 66% of PRS tenancies meet Decent Homes 70% have stayed more than 2 years in current tenancy 46% have stayed more than 4 years 63% current rent same as 12 months ago More than half of those who leave tenancies choose to do so. Sources: CLG Private Landlords Survey 2010; NLA Tenants Index Q1 2012

22 Improving Standards Regulation hits the law-abiding hardest Improving landlord knowledge and understanding Incentivising accreditation Intelligent, targeted, co-ordinated enforcement Filtering out the good landlords Targeting the rogue operators

23 Summary PRS is an essential part of the London housing mix Affordability is an issue for all tenures There is no simple answer to supply Simplistic answers cause unintended consequences The PRS works for most people Enforcement needs to focus on the problems Make the good landlords partners in raising standards

24 NATIONAL LANDLORDS ASSOCIATION